If you ask several small business owners about what is their least favorite task, most of them will agree it is bookkeeping. And for a good reason. Bookkeeping is time consuming and difficult activity, where one small mistake can cost you dearly. Regardless of how daunting the bookkeeping is, it is a necessary aspect of any successful business. Nowadays, there are a plethora of various bookkeeping options to choose from, and the choice is not easy because it might be the threshold you’re about to trip against. Not every method of bookkeeping is suitable for every kind of business. The goal of this article is to show you all the bookkeeping options you might practice for your business.
What is Bookkeeping?
There are various different ways to define bookkeeping, but the simplest one includes all the actions that will ensure your enterprise has an accurate record of its financial activity. As technology progressed, the process of bookkeeping followed, so contemporary bookkeeping is a more complex process, including a variety of tasks. Basically, efficient bookkeeping is the backbone of a successful business.
Methods of Bookkeeping
When it comes to small business bookkeeping there are three ways you can manage your finances. You can do the bookkeeping by yourself, online or offline. Or you can use some of the online bookkeeping services. Finally, you can personally work with bookkeeping professional. Now let’s see how each of these works.
If your business is still very small you might feel confident you will be able to manage your bookkeeping on your own. For that cause, you can use some of the free accounting software or simply a manual book or spreadsheet. Be aware though this method requires significant knowledge and hard skills you have to achieve. There are various financial operations you need to record accurately. If you decide to use the software, you might swerve some of the accounting skills required, but you’d have to acquire tech skills instead. Not to mention that even in a small business bookkeeping responsibility for finances is entirely yours, which sometimes might prove to be too much of a burden.
If the idea of personal management isn’t the most appealing to you, you can outsource the bookkeeping to an online service. These services will handle your bookkeeping processes and make your life if a bit easier, of course for a prize. The professionals you pay will manage your small business bookkeeping remotely, and you can contact them by phone or email. That way, you can solve all all all your bookkeeping queries without personal contact.
On the other hand, if you prefer personal contact with your bookkeeper, there is that option too. You may employ a part-time bookkeeper to work on your finances, or if you can afford it, a full-time company bookkeeper. Working with someone in person makes them available to give you their advice and expertise at all times. Furthermore, personal cooperation with a bookkeeper allows them better insight into your finances, methods, and tools you’re using.
How To Find It?
Let’s say you decided to look for bookkeeping assistance and outsource an expert, online or offline. The real question is where to look for one. There are two places you can start looking for them: your business contacts and the internet.
If you already work with some sort of business professionals, you can ask them to recommend you a good bookkeeping service. You may even contact other small business owners and ask them about the bookkeeping services they have used or still using.
Or you can go straight to the internet and quickly and easily search for bookkeeping services online. Although this is a much faster way, it is also way less reliable, as you don’t have any guarantee they’re really what they claim they are. In order to insure yourself, before you hire a bookkeeping service you have to make enquire about them. The best place to get some info is professional bookkeeping communities, blogs, and forums. Before hiring someone as a bookkeeper or service you need to analyze their reviews and talk to them directly.
Even for a small business, bookkeeping is a very complex process and it takes a lot of skill and dedication to successfully run your books on your own. Many business owners opt for bookkeeping assistance. Thankfully, the advantage of communication technology allows them to outsource bookkeeping professionals. It’s still necessary to work together for the most beneficial results.
Guest author, Lucas, is a business consultant with a passion for writing. Doing his research, exploring and writing are his favorite things to do. Besides that, he loves playing his guitar, hiking, and traveling.